Secretary of Housing and Urban Development Sean Donovan was on Bloomberg this morning discussing the state of housing and the Obama Making Home Affordable Plan. There are some signs that the program is starting to work.”I think we have a good balance of carrots and sticks” said Donovan when asked about banks and servicers working together to modify mortgages for homeowners unable to make mortgage payments. Time will tell if indeed the plan is working. I can tell you that here in Arizona, one of the hardest hit areas, the numbers are starting to be not as dismal. Mark Tait, a principal in NXT Generation Real Estate shared some interesting numbers with me last week:
In the greater Phoenix Metro area:
- Year over year closing are up almost 4000 units.
- Inventory has dropped almost 9000 units since December, 2008.
“As a man on the street, I can tell you multiple offers are back and most REO properties.” said Tait, “$200k and below are going out at FULL PRICE.” Now does this mean that we have a bottom in housing? No, I don’t think we have hit bottom in terms of values yet, what I can say though is that activity is returning to the market–and that is the first step on a long road to stability.
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Be wary of a fales bottom in this market. We’re seeing the inventory of distressed homes (foreclosures & short salss) declining, but not “retail” properties.
Also, the FNMA/FHLMC foreclosure moratoriums have been lifted and will lead to increased inventory soon.
Drew, I never said this was a bottom in this post. In fact I say that I don’t think we have hit a bottom in terms of values for precisely the reason you state.
i think usa will get out from the crisis soon
widi
Can anyone give me a website address that has the real answers to President
Obamas “Home Affordable Plan” to avoid foreclosures and receive a Modification.
Thank you for your assistance.
Pat
@Pat – The link to the website is http://www.makinghomeaffordable.gov/
17 June 2009
SUBJECT: HOME LOAN MODIFICATION IMPASSE WITH WELLS FARGO BANK
Is there any help, advice, solution, out there in cyberworld for me?
Folks, in accordance with the directions for the public to follow as outlined by federal laws brought forth by President Obama designed to protect citizens from home foreclosure, I have done the A to Z steps and still find myself in limbo.
As directed to do by HUD and makinghomeaffordable.gov, I submitted an application to ACORN Housing, one of the agencies approved by HUD and which is listed on the HUD website. After waiting 2 months without hearing from my Acorn Counselor or the lender for my mortgage, Wells Fargo, I turned to the offices of elected officials, namely, the California State Assembly and the office of the Congressmember representing the district in which my home is located.
I initiated contacting Wells Fargo as far back as June of last year. I engaged in a most frustrating and time consuming ring around the roses phone calling game from Feb to March of this year, going absolutely nowhere.
At this point what can I do to FINALLY MAKE PROGRESS?
I am in a very precarious financial state. Since May -08 my work hours have been reduced to 50% and my monthly mortgage absorbs nearly my total net income.
I seek relief in the form of a modification put in place for me that is 31% of my income, sharply cuts the principal amount, replaces the adjustable rate with zero payment toward principal balance with a low fixed rate.
This is in accordance with President Obama’s prescription for home ownership protection.
Please, anyone, everybody who knows, kindly reply.
At this point I am seriously considering sending a letter directly to Sec Shaun L.S. Donovan. Would that do any good?
Again and AGAIN, PLEASE HELP!
Nailah
Nailah,
If your mortgage is currently held by an investor that does not participate in Making Home Affordable – e.g. Goldman Sachs, et. al., you may not be able to qualify for a modification under the MHA Guidelines. One thing to look into is applying for a modification under strictly a hardship / net cashflow basis, while performing a NPV test to show your lender that the cost of the modification is in fact less than the cost of foreclosing. The other possibility is to review your original loan paperwork for violations of RESPA, TILA, etc. and, should you find a violation, use your right of rescission to leverage your lender / servicer into granting an aggressive modification to you. Our links up top if we can be of assistance!
Justin Bartlett’s last blog post: Mortgage Rates Increase, Ramifications for Needy Homeowners
Being in the industry as a Loan Officer, I have viewed a lot of confusion as it relates to home owners getting the help they need. We can start with has anyone been help? yes. Do most people know about Obama’s plan in detail and how it applies to them? No. A lot of people are confused and don’t know about the finer details like qualifying, where to get the information they need, who to trust! I will go on to say that the government needs to put more emphasis on educating the public on what is available and how people can tap into it. Assistance is available and their are good programs to help people, but we must do a better job of getting this information out!
Chuck McCall´s last blog ..6 – Tips for Negotiating a Loan Modification Successfully